Mobile Homes Bill

Heather Wheeler Excerpts

Friday 19th October 2012 Commons Chamber

[Peter Aldous]

I am grateful to my hon. Friend for his intervention. There are some very responsible site owners, but there are also some unscrupulous rogue operators—gangsters, dare I say it?—against whom everyone needs the right protection.

The problem we have identified has been recognised by the Prime Minister, who, in response to a question from my hon. Friend the Member for Mid Dorset and North Poole (Annette Brooke) during Prime Minister’s questions last November, said:

“There are some extremely good park home owners, who not only obey the rules but demonstrate responsibility and compassion, but there are some who do not. We are committed to providing a better deal for park home residents by improving their rights and increasing protection against bad site owners.”—[Official Report, 9 November 2011; Vol. 535, c. 283.]

It is in that spirit, and with full Government support, led by the former Housing Minister, my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps), that I present the Bill for Second Reading. In summary, the problem park home owners face is that in recent years many sites have been acquired by rogue operators who, in pursuit of obscene windfall profits, exploit the piecemeal regulatory framework to make the lives of many elderly and vulnerable people a misery.

[Heather Wheeler (South Derbyshire) (Con)]

I congratulate my hon. Friend on getting the Bill to Second Reading and hope that we will get it through today—I am sure that we will. Many rogue operators have come in and bought up sites in idyllic places. In South Derbyshire we have some very good site operators, but there are also some people who have come in more recently who do not care about the residents and basically want them off the sites. It is a really poor show. The Bill will hopefully remedy the situation.

[Peter Aldous]

My hon. Friend summarises well the situation and the challenge we face.

The exploitation takes a variety of forms: the deliberate miscalculation of pitch fee increases and utility charges; poor, or even a complete lack of, site maintenance, as is the case at the Waveney residential park in Beccles in my constituency; and the abuse of the right to approve new buyers, known as sale blocking, which rogue site owners often use as a device to buy park homes at knock-down prices before selling them for windfall profits. There has even been a case involving terrified home owners being forced to sell their home, which had a market value of £80,000, for £1—a peppercorn.

The existing legal framework, which dates back over 50 years, is outdated, does not deter unscrupulous site owners and does not provide local authorities with effective powers. Local authorities have a limited ability to revoke licences when site conditions are being breached and, indeed, the granting of licences is at present little more than a rubber-stamping exercise. Moreover, the fines that local authorities can impose to deter operators are inadequate, and some site owners will risk the threat of small financial sanctions rather than maintain sites properly.

Demands for reform are sometimes made on the back of an isolated case, but that is not the situation with regard to the Bill. The case is compelling and overwhelming. The Department for Communities and Local Government carried out a consultation earlier this year, to which there were over 600 responses, and the Communities and Local Government Committee has carried out a full and comprehensive inquiry and come forward with recommendations, many of which are included in the Bill. An issue that I found particularly disturbing about that inquiry was that, of the 250 people who made representations, some asked for their names to be withheld as they were scared about possible reprisals.

--- Later in debate ---

[Annette Brooke (Mid Dorset and North Poole) (LD)]

I congratulate the hon. Member for Waveney (Peter Aldous) on his success in the ballot and, even more, on his selection of this issue for his Bill. I am sure that he will go down in history for his wise and splendid choice. Like the hon. Member for North East Derbyshire (Natascha Engel), I cannot quite believe that we are today to start the introduction of much-needed legislation to protect park home owners, so many of whom are vulnerable and have suffered financial and other forms of abuse over many years.

I pay tribute to a constituent of mine, Sonia McColl, a park home owner who set up the national park home owners justice campaign, particularly to stop sale blocking, who deserves to be honoured for her work, persistence and readiness to run a campaign of this magnitude, especially given that she had to learn on the job. She reminded me that three years ago this week the first petition to the Government to stop sale blocking went out. Almost 10,000 people signed it before Christmas 2009. She has also organised several mass demonstrations in London, and we have organised meetings in the House so that MPs can hear at first hand the dreadful experiences of many park home owners.

Initially, it seemed that the then Minister for Housing, the right hon. Member for Welwyn Hatfield (Grant Shapps), was not inclined to introduce new and extra regulations—after all, the Government initially intended to cut regulation—but then came progress, as the evidence showed that the industry had been infiltrated by rogues and that action needed to be taken for the sake of the whole industry, as well as for park home owners.

[Heather Wheeler]

I praise the hon. Lady for her work. I am proud to be a member of the all-party group on mobile homes and to have my name on the Bill. Does she agree that our work on the Select Committee on Communities and Local Government, bringing this issue forward and taking enormous amounts of evidence, was a turning point that gave the final nudge to get the Government to do something? I congratulate my hon. Friend the Member for Waveney (Peter Aldous), too.

[Annette Brooke]

I thank my hon. Friend for that intervention. I will refer specifically to the Committee later.

Sonia has carried out a massive survey, Consumer Focus has proceeded with an investigation and, latterly, the Communities and Local Government Committee has conducted an inquiry. Throughout, there has been enormous support and help from the park home owner associations. Many parliamentarians have been involved over the years, although I can only mention a few today. First, of course, I want to congratulate the right hon. Member for Welwyn Hatfield for bringing these proposals together and the noble Lord Graham for his unstinting support for park home owners over many years. More recently, there has been the truly cross-party work of the all-party group and, in particular, the meetings between Ministers and me, my hon. Friend the Member for Winchester (Steve Brine) and the hon. Member for North East Derbyshire. This is the very best type of legislation, with strong cross-party support.

To prove that malpractice is widespread, Consumer Focus carried out independent research to back up the anecdotal material that we all had. This provides some incredible background—this is an evidence-based Bill—and makes it clear that we are not dealing with a series of isolated events, but that the problem goes right across the whole industry.

I am pleased with the structure of the Bill, although of course we will have to scrutinise each clause closely in Committee. On licensing reform, local authorities must have the resources to do what I believe most of them want to do. Consumer Focus reports in its survey that local authorities want more power, so let us give them the necessary resources. They are on the spot, and it is fairly easy for park home owners to go and find someone at their local authority.

According to Consumer Focus, 25% of people surveyed reported problems of maintenance, security and safety, which is why it is important to have a site licence and site licence conditions, to enforce those conditions and to ensure that the site owner does not carry out vital work but that the local authority is empowered to do it and recover costs. I agree with the hon. Member for Winchester that this should be a last resort, however, and let us hope that the Bill sends out the message that we need a better and more consistent approach throughout the industry. I am a little concerned, however, that the clauses on licensing might not be brought in operation before April 2014. That is a long time to wait, if, as I hope, the Bill is enacted in 2013.

On clause 8, we must thank the Select Committee for its recommendation regarding the “fit and proper person” rule, which would not be in the Bill had it not been for the Committee’s important work. It is a clever device to have in our back pocket ready to introduce. We have been calling for it for many years. There are reservations—will it work?—but it is excellent that it is now in the Bill.

Clause 9 deals with site rules. It is important that park home owners know exactly what the rules are, that the rules are printed in the pitch agreements and that the agreements are transparent. We must have certainty. I have come across cases of the age clause in site rules being very conveniently changed after a purchaser has been turned away for being the wrong age. I suggested that site rules be lodged with the local authority, so I am pleased that such a provision has been included. One of my local authorities requires residents associations to lodge their constitutions with it, and does not invite associations that do not do so to consultative meetings. So there is a precedent. This would get a grip on the problem of people changing the rules as they go along. Having said that, some park home owners have expressed concern about how the licence fee will be paid, but we will talk about that in greater detail later.

Sale blocking is what first got me involved in this issue. We had the most appalling incident in my constituency where £15,000 was offered for a home that could have gone for £150,000 on the open market. The problem is widespread. Consumer Focus showed that 28% of residents thought they could not buy or sell their homes freely, and that 10% reported problems of intimidation, violence, vandalism and damage to property.

--- Later in debate ---

[Brandon Lewis]

I thank my hon. Friend for the opportunity to confirm that. Yes, we will, and I will highlight that point specifically in a few moments.

As has been said, the Bill affects only a small number of homes, but it is hugely important to the people who live in those homes, and that is what matters. It will deal with about 85,000 park homes on 2,000 sites. The sector represents only about 0.5% of the housing stock in England, but it is vital. Its residents have rights just like everybody else, and they matter a great deal to all of us. The fact that the sector is small does not mean that we should not address the injustice that is rife in it, and the Bill goes some way towards doing that. That is why the Government fully back the Bill.

Let me explain the Government’s position and why the Bill does not contain more—a point on which some Members have commented. The Bill builds on the thorough and searching inquiry conducted in the spring by the Communities and Local Government Committee. I congratulate the Committee on the report and thank them for it. The Bill takes forward a number of the Committee’s recommendations. As we have heard today, there is a good deal of consensus on the fact that legislative reforms are desperately needed. There is cross-party support for such reforms. Members have given examples of unacceptably unscrupulous behaviour towards older and sometimes vulnerable home owners, disgraceful acts that must not be tolerated for a moment longer.

For Members with park homes in their constituencies, these stories will unfortunately be all too familiar. My hon. Friend the Member for Waveney reminded us that the Prime Minister has himself called for urgent action to tackle the problems in the sector. The Bill will do that, but the Government are mindful, as is my hon. Friend, that there are many good site owners in this industry who provide a professional, top-class service to their residents and respect their rights. Sadly, their good work is too often masked by the unacceptable behaviour of the unscrupulous operators who pervade the sector.

We want to create a level playing field where the good operator does not face unfair competition from unscrupulous ones who ignore their obligations and the rights of others. We want to see the industry put on a sustainable footing for the future, so that those who run a decent and honest business can flourish and there is no place for the unscrupulous and for criminals. We want home owners to be confident that their homes are safe and their rights are respected. The Bill aims to achieve that by introducing measures targeted at those who ignore their obligations and exploit their residents, while placing minimal burdens on those businesses that manage their sites well and respect their residents’ rights—the right approach with a light touch.

The Bill focuses on three key areas: reforms to the antiquated licensing regime that applies to park home sites; removing the ability for unscrupulous operators to block lawful sales by residents of their homes; and ensuring that pitch fee increases are transparent to prevent residents from being overcharged. All those issues were identified in the Department’s consultation paper on reforms to the sector published in April.

The Bill also includes a provision that would permit the Government to introduce a “fit and proper person” test through secondary legislation, should that prove necessary, which was one of the Select Committee’s recommendations. I will say a few words about why the Government have accepted that recommendation. It is not our intention to introduce an industry-wide “fit and proper person” requirement at present. I sincerely hope, as many Members have commented today, that the introduction of such a test will never be necessary. New bureaucratic burdens on good businesses must be a last resort. As we have heard this morning, the majority of site owners are good.

However, we must also ensure that conditions in the sector improve, which is why the Bill focuses on making it simply unprofitable for unscrupulous operators to exploit residents. We accept the risk that some of the worst operators might try to persist and that it might therefore be necessary to take powers later to remove them directly from the industry. Therefore, we will review the situation after a suitable period to see how behaviour in the industry has changed. If unscrupulous practices persist, we may consider introducing the “fit and proper person” test. A clear message must go out to bad owners that their behaviour will not be tolerated and, if it continues, the Government will act.

[Heather Wheeler]

I congratulate the Minister on his new post—it is great to see him at the Dispatch Box. I am so pleased to hear his words about the “fit and proper person” test. I came here four years ago, as leader of South Derbyshire district council, to meet Ministers and discuss this matter, but we were just thrown out of the room and not one iota of the proposal was to be considered. Time has moved on and I am delighted that there is cross-party support for the proposal. Clearly, it is such a big issue that the Government have listened and everyone wants it to happen. I thank the Minister very much.

[Brandon Lewis]

I thank my hon. Friend for her comments. Hopefully I have been able to give some assurance about the Government’s determination to deal with this issue. If we need to act, we will do so.

I acknowledge that my hon. Friend’s Bill does not include everything the Government consulted on. The policy reasons are explained in the published response paper, which is available on the Department’s website. In some cases we have simply concluded that legislative change would not necessarily be the best solution, but it is also a matter of size and what can be achieved in a private Member’s Bill. The Bill already runs to 15 clauses, which is unusual for such a Bill, and it would have been impossible to include everything we consulted on if it was to have much chance of completing all its stages and receiving Royal Assent—something that we all want and which is important for the industry.

I want to congratulate everyone who has campaigned so hard on this issue over the years, including the previous Housing Minister, who did a huge amount of work on it, Lord Graham and the all-party group on mobile homes. I also congratulate the Select Committee on its report.

In conclusion, I fully agree with my hon. Friend’s decision to focus the Bill on the key areas of reform that would have the greatest impact and the most lasting effect. These reforms, as we have heard, are well overdue and desperately needed in the industry to protect all our residents. That is why I commend the Bill to the House and wish it a safe passage through this House and the other place.